Energy Conservation&

Rebate Opportunities

Barb Jerhoff

Minnesota Chief Engineer’s Guild Quarterly Meeting

June 16, 2009

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Minnesota conservation programs

Active environmental communityLegislatively mandatedStrong PUC support

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How does it work?

Minn. Dept. of Commerce requirements 2% of electric revenue 0.5% of gas revenue

Shows on bill - part of “Resource Adjustment” DOC approves efficiency programs;

we administer them Justify spending with documented energy savings

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Environmental impacts

Reduce emissions Pollution prevention

Avoid new power plants 8 mid-size gas combined cycle (approximately 250 MW each) since 1990

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Types of programs

Studies Prescriptive / fixed rebates Custom rebates Segment Offering Rates, discounts and other options

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Electric programs

Cooling Efficiency Commercial Real

Estate Efficiency Compressed Air

Efficiency Custom Efficiency Data Center Efficiency Efficiency Proposal Electric Rate Savings Energy Analysis

Energy Design Assistance

Efficiency Controls Lighting Efficiency Motor Efficiency Process Efficiency Recommissioning Saver’s Switch

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Natural gas programs Boiler Efficiency Furnace Efficiency Commercial Real Estate Efficiency Custom Efficiency Efficiency Proposal Energy Analysis Energy Design Assistance Efficiency Controls Natural Gas Rate Savings Process Efficiency Recommissioning

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Studies

Identify and qualify improvementsQuantify expected results

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Energy Analysis

Online Assessment A FREE tool to help you analyze your facility and identify savings

Onsite Assessment Engineer comes onsite to analyze actual building conditions and

indentifies potential savings Cost to customer is $200 - $300 based on square footage

ENERGY STAR Benchmarking Xcel Energy uses your building information to determine the ENERGY

STAR score for FREE Engineering Assistance Studies

In depth engineering study on a major system or process Xcel Energy will fund up to 50% of the study cost not to exceed $15,000

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Recommissioning

Tune up existing building systems and controls rather than replacing them Optimize HVAC operations Fine-tune time of day schedules Improve indoor air quality Reduce equipment wear and tear

Many measures are low/no cost with paybacks less than one year

Potential savings of 5 to 20 percent

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Recommissioning

Studies Up to 50% of the study cost, not to exceed

$15,000 Preapproval is required

Implementation Up to 50% of the project cost $200/kW or “implied kW” (kWh/8760) $2/MCF for Xcel Energy natural gas customers

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Data Center Efficiency

The Data Center Efficiency program is designed to assist Xcel Energy customers with data center efficiency improvements through study funding and rebates.

Customers participate in our two-step program to realize energy savings and earn rebates. Data Center Study Efficiency study provides up to 50 percent funding, not to

exceed $15,000 (special consideration for extremely large projects)

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Data Center EfficiencyEligibility: Any size data center Changes to existing Adding new to existing site

New construction projects >50,000 sq. ft. analyzed under EDAHow to Participate: Two parts – study & implementation Part 1: Study

Preapproval application with proposal Xcel Energy reviews to determine potential study funding, notifies

customer up to 50% of cost; up to $15,000

Study provider completes study and submits final for approval We review and offer packaged rebates upon approval

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Data Center Efficiency

Already completed a study? Apply for Fast Track Study option

Previously completed study Study review by Xcel Energy No study fundingPart 2: Implementation rebates Customer selects package of improvements

Up to $300 per kW saved Customer implements package, submits for rebate

Bundled rebates Combine short and long payback projects

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Lighting Redesign Studies & Rebates

Study By Lighting Certified (LC) professional or

lighting professional with demonstrable design experience

Determine proper lighting levels For overlit or mislit space Funding up to 50% of study cost; max of $15,000

Implementation rebates Up to $400 per kW saved

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Lighting Efficiency

Prescriptive Rebates Fixed dollar incentives for installing energy efficient

equipment Retrofit rebates for existing facilities of any size

One-to-one equipment change outs Helps offset the cost of replacing current lighting with

more-efficient equipment New construction rebates for new facilities or major

renovations Rebates available when you choose lighting options

that are more efficient than the standard

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Cooling

Rebate main system components Prescriptive rebates

Fixed rebates for purchasing common energy efficient equipment

Rebate changes effective June 1st Rebates available on a $/ton basis Incremental efficiency bonus

Custom rebates Unique equipment that does not fall under our prescriptive

program VAVs and cooling towers reviewed through Custom

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Boiler Efficiency Rebates

New energy-efficient boiler systems Hot water boilers

(condensing & non-condensing)

Steam boilers (high or low pressure)

Efficiency improvements to existing systems Outdoor air reset controls Modulating burner controls

( 5:1 turndown) O2 trim controls Stack dampers

Maintenance measures that boost efficiency Tune-ups

(every other year) Steam trap

repair/replacement Co-funded studies to identify,

analyze and prioritize Heating System

Optimization (system wide or component specific)

Energy Analysis options Recommissioning

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Boiler Efficiency Rebate Types

Prescriptive New boilers 10 million BTUH

used for heating or combination heating & domestic water heating

Add-ons or maintenance for any-sized boiler used for heating or combo purposes

Custom Efficiency boiler rebates New boilers >10 million BTUH regardless of use Efficiency measures for any process boiler Requires preapproval prior to purchase & installation

See efficiency requirements and rebate amounts at xcelenergy.com/BoilerEfficiency

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Custom Efficiency ProgramRebates for energy-saving projects or process

changes that are not covered by our prescriptive equipment programs.

Rebates are up to $200 per kW saved and $2 per MCF saved.

Pre-approval is required prior to equipment purchase.

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Custom Efficiency - examples

Controls – CO2 based ventilation, energy recovery Cooling – control valves, free cooling Equipment – Ammonia refrigeration,

humidification, elevator modernization, transformers

Lighting – LED display signs, daylighting, non one-for-one lighting retrofits

Motors – 500+ HP motors, 200+ HP VFD, VFDs on non-fan or pump applications

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Efficiency Controls rebates

Energy Management Systems (EMS) and Automated Building Controls Control Lighting, Heating, Cooling, Ventilation, etc.

Add new system to building Add control points to existing system Microprocessor-based controlling

Model-based analysis Rebate: up to $200/kW saved and up to $400 per kW saved for

lighting measures Easy to participate

EMS preapproval application Random verifications

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Efficiency Controls – lighting

Good for system-or micro processor-based controls Benefits

Greater kW savings potential Constant load High operating hours Actual kW (vs. implied)

Reduced cooling load on HVAC systems Higher rebates ($400/kW vs. $200/kW)

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Business New Construction – Energy Design Assistance

Free design assistance plus incentives on installed measures $300 per kW $4 per MCF

New buildings, additions or major renovations over 50,000 square feet

Design Team reimbursement from $8,000 Xcel Energy does contract directly with specific energy modeling

firms Two program options offered depending on energy goals and

design stage Basic Enhanced

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Business New Construction – Energy Design Assistance

“Basic” TrackTiming: Schematic or Early Design DevelopmentEnergy Savings Requirement: 5% energy demand savings reductionServices: Energy modeling, review of CDs, site verification &

monitoring of select strategies

“Enhanced” TrackTiming: Pre-design or Early Schematic DesignEnergy Savings Requirement: 16% energy demand savings reductionServices: “Basic” services, plus early modeling/massing, potential

daylighting analysis and support for Energy and Atmosphere Credit one for LEED certification or support for other green certifications where applicable

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Business New Construction – Energy Efficient Buildings

Minimum Project Size: Any size building may apply, but is intended for buildings below 50,000 square feet

Timing: Any time into construction, but are encouraged to apply before completion of construction documents

Rebates: Vary depending on equipment purchased Services: On site verification to review installed

measures

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Rates, Discounts & Other Options

RatesBilling/payment options WindSourceSM

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Electric Rate Savings Savings up to 60% on Demand Charges Reduce your demand at our request during peak demand periods to a predetermined

level Must have a controllable load of at least 50 kW to

participate See savings year ‘round Help reduce the amount of electricity our

customers need at critical times

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Saver’s Switch More than 13,000 MN businesses participating Sign up now to begin saving this summer Single and dual stage central air conditioners Credit of $5 per ton of enrolled air conditioning

June through September Remote-controlled switch for each unit Cycle off and on for short periods on peak demand

days No out-of-pocket cost; guaranteed savings

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Gas Rate Savings

Savings around 25% over firm rates Switch over to back up fuel during curtailment

periods Must be willing to go off system within one hour of

notification Helps reduce gas consumption during system

peak times

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Billing/Payment Options

Electronic Data Interchange (EDI) Electronic Funds Transfer (EFT) Online Account Management

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WindSource

Voluntary wind energy program Sold in 100 kWh blocks Price is $3.53 per block Receive fuel cost credit for all WindSource energy Minimum three year commitment

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Questions?

Barb Jerhoff651-229-5565

barb.jerhoff@xcelenergy.com